GRAND BANKS YACHTS LIMITED

(Company Reg. No.: 197601189E)

274 Upper Bukit Timah Road #03-16
Singapore 588213

Grand Banks Yachts’ Net Order Book Up 66.5%

to S$54.6 Million; FY2019 Net Profit At S$1.5 Million

As at 30 June 4Q
4Q Change FY2018 Change
S$’000 FY2018 FY2019
FY2019 (%) (Restated)1 (%)
(Restated)1
Revenue 25,659 14,824 73.1 79,568 81,965 (2.9)
Gross Profit 2,941 5,333 (44.9) 16,933 20,363 (16.8)
Total Operating
(3,023) (4,088) (26.1) (14,405) (15,296) (5.8)
Expenses
(Loss)/Profit Before
(570) 1,135 NM* 1,221 5,197 (76.5)
Tax
Net Profit 122 4,797 (97.5) 1,499 8,878 (83.1)
*NM: Percentage/computation not meaningful

SINGAPORE, 29 August 2019 – SGX Mainboard-listed Grand Banks Yachts Limited (“Grand
Banks” or “the Group”) said today its net order book rose S$21.8 million to S$54.6 million as at
30 June 2019, from S$32.8 million as at 30 June 2018, as a result of 11 new boat orders and three
trade-in boat orders during the quarter ended 30 June 2019 (“4Q FY2019”).

Revenue for FY2019 amounted to S$79.6 million, 2.9% lower than FY2018, due to fewer boats in
production reaching maturity.

In line with the lower revenue, Grand Banks’ gross profit for FY2019 decreased to S$16.9 million
from S$20.4 million in FY2018. Gross profit margin declined to 21.3% from 24.8% over the
comparative periods due to lower brokerage commission income.

Cash flow used for operations in FY2019 was S$1.4 million, as compared to S$0.1 million in
FY2018. This was primarily due to lower net profit, increase in inventories and contract assets as
well as a decrease in trade and other payables. Cash and cash equivalents increased to S$8.6
million as at 30 June 2019 from S$8.4 million as at 30 June 2018.

1 The restated FY2018 results reflect its retrospective adoption of the Singapore Financial Reporting Standards International
(“SFRS(I)”), whereby revenue is progressively recognised based on a cost-to-cost method
Earnings per share for FY2019 amounted to 0.81 Singapore cent compared to 4.82 Singapore
cents in FY2018, while net asset value per share decreased to 29.95 Singapore cents as at 30 June
2019 from 30.57 Singapore cents a year ago.

For the quarter ended 30 June 2019 (“4Q FY2019”), revenue increased 73.1% to S$25.7 million
from S$14.8 million in 4Q FY2018. However, gross profit decreased 44.9% to S$2.9 million from
S$5.3 million in FY2018, while gross profit margin declined to 11.5% from 36.0% over the
comparative periods.

The lower margins in the final quarter were due to more lower margin inventory and trade-in
boat sales, and lower brokerage commission income. Accordingly, net profit decreased to S$0.1
million in 4Q FY2019 from S$4.8 million in 4Q FY2018.

Mr. Heine Askaer-Jensen, Chairman of Grand Banks, said: “The commendable year-on-year
growth of our order book reflects Grand Banks’ strong product program, exceptional customer
service and successful marketing and sales initiatives. It is a strong start to FY2020, and I look
forward to continue adding value to our shareholders.”

Mr. Mark Richards, CEO of Grand Banks, said: “Following our successful restructuring initiatives
over the past four years, Grand Banks is poised to bear the fruits of its labour. With a stronger
foundation for growth, a wider range of boat models and a larger, state-of-the-art factory in Pasir
Gudang, we will be able to push out orders faster than ever. We will focus on more intensive
marketing and sales to maintain the growth of our order book in FY2020 and beyond.”

According to Mr Richards, the order book is expected to remain robust, as the Group prepares
for the debut of bigger, sleeker and better-performing luxury boat models, such as the Grand
Banks 54, Palm Beach GT60 and Palm Beach 70 which will debut in the forthcoming four
boatshows in USA.

## End of Release ##
About Grand Banks Yachts Limited
Grand Banks, a renowned manufacturer of luxury recreational motor yachts for 60 years, has
designed and developed vessels that have become icons among boaters across the globe. While
staying true to this heritage, Grand Banks continues to defy the expectations of yachtsmen with
its timeless style, unique innovation and unyielding commitment to quality.

The Group manufactures yachts under the Grand Banks, Eastbay and Palm Beach brands out of
its manufacturing yards at Pasir Gudang, Johor, Malaysia, and Berkeley Vale, Sydney, Australia.
The yachts, which range between 42 feet and 70 feet, have a reputation for impeccable quality
that delivers unrivalled performance.

Grand Banks was listed on the Singapore Exchange Limited ("SGX") in 1987 and upgraded to the
Mainboard in 1993.

For more information, visit: www.grandbanks.com; www.pbmotoryachts.com

Grand Banks Yachts Limited contact:

Chiam Heng Huat, Chief Financial Officer
274 Upper Bukit Timah Road #03-16, Singapore 588213
Tel: (65) 6545-2929
Chiam Heng Huat, hhchiam@grandbanks.com

Investor/Media Relations contact:

WeR1 Consultants Pte Ltd
3 Phillip Street #12-01, Royal Group Building
Singapore 048693
Tel: (65) 6737-4844
Isaac Tang, grandbanks@wer1.net